marketing plan for IKEA宜家市场分析.docx

1、marketing plan for IKEA宜家市场分析Final Project: The strategic development and growth of a companyIKEA in India MC1y2, 2nd Semester AP Degree Marketing Management 2010Group members names and initial:Cristina Alexandra Grindei(AG), Alisha Khatri(AK), Xue Yin(Y), Yunjing Lu(L)Date:28/05/2010List of Content

2、s1. Introduction. 32. Problem formulation.33. Methodology .34. Limitation.45. Macro and micro Analysis.5- 5.1 Country profile.5- 5.2 Company profile.86. Strategy.10- 6.1 Entry mode.10- 6.2 Segmentation ,target market and positioning.12- 6.3 marketing mix strategy.13- 6.4ansoff analysis.14- 6.5 value

3、 chain analysis.15- 6.6 innovation.167. Barriers and cost.16- 7.1 business law.16- 7.2 budget178. Assessment.189. Conclusion.1810. Reference.1911. Appendix .201.IntroductionIKEA, the Swedish superstore, known for its inexpensive stylish home furnishings, is suffering a financial downturn in Europe m

4、arket. It is seeking anxiously for new market to expand to balance out its global sale. Meanwhile in India, instead of living at home with parents until marriage, many young Indians are moving into their own apartments, postponing marriage, and even cohabiting. Real estate is booming and city living

5、 is getting more expensive and many people find themselves squeezed into tight quarters with a need for modern, space-saving furniture. It seems that now is just a perfect time for IKEA to enter India. So is India an opportunity or a trap? We will find out in our report.2. Problem FormulationIKEA is

6、 planning to enter the Indian market.1. is India an attractive market for furniture?2. What are the opportunities and barriers for IKEA entering the Indian market?3. How could IKEA establish itself in India?3. MethodologyThe project offers an approach to the internationalization of a company regardi

7、ng the marketing, value chain, culture analysis, business law and economics. Secondary data consisting of different types of literature has been collected for the Literature review, in particular strategy textbooks, reviews, and online sources. The most frequently used databases by us are Euromonito

8、r, Marketline, economist, Google etc. Access to databases is provided by Niels Brock Copenhagen Business College.We will start the project with making the company and the country profile. In the country profile there will be made an assessment on how the country is doing now regarding the economy/in

9、come, geographic and demographic issues, competition in the furniture market, and law barriers for an international company. The culture analysis and communication will also be analyzed in order to set the differences in the way of thinking between Indian people and Swedish people. Regarding the com

10、pany profile, we will make a current financial situation of the company and their previous experience in Asia. A SWOT analysis will be made in order to evaluate the strategic position of IKEA by identifying its strengths, weaknesses, opportunities and threats. After these being made we will start ma

11、king the main part of the project, the analysis and strategies. The first analysis will be the Ansoff growth strategy matrix. The Ansoff matrix is used to implement a growth strategy. The second analysis will be the Marketing mix strategy, that marketers must manager so that they satisfy or exceed c

12、ustomer needs better than the competition. The next analysis is the Marketing Segmentation that has the to identify the groups of customers that IKEA is going to address to in India and so the firm can create a differential advantage. To decide whether IKEA should go to India or not and if they go h

13、ow should this be done (what entry mode), we will use internationalization strategies. To be able to face any problem that might come out in India, a business law assessment will be made regarding: the marketing law, the competition law, exclusive rights and sales of goods act. In the value chain th

14、e primary and secondary data will be analyzed from the company and from Indian people point of view. Also an assumption on the future costs for IKEA expanding to India will be made.Finally, a conclusion will be made to answer the problem formulation, if India is a good opportunity for IKEA to expand

15、 to or not. 4 . LimitationLimitations of this project wore, that we had to write 3-4 pages for each subjects. We had problems in finding the annual report of IKEA for the economic part, as IKEA group is not a publicly listed company and therefore does not issue annual report, For the business law pa

16、rt, we wore limited because we only had learned about the Danish law; therefore we had to apply the Danish law and not the Indian law. In this assignment the focus was only the implantation of IKEA furniture and not IKEAs restaurant. We strove to use the newest facts and numbers all times, neverthel

17、ess there was a time where we had to use slightly older or simply assumed numbers due to the limited information we have access to, and therefore it should also be taking in consideration that the budget of the market is very limited.5.Micro and macro analysis5.1 Country profile Geographic and Demog

18、raphicsWith a population of about 1.2 billion people, India is the second most populated country in the world. At present there are three cities in the country with a population of 5 million or more. That makes up over 15% of the worlds population even though the country only occupies 2.4% of the wo

19、rlds land. By 2050, India is expected to overtake China and become the worlds largest country in terms of population. This large population provides a huge consumer market with extraordinary potential for businesses. As a business opportunity, this is exciting news for India, especially as 51.0% of

20、the total population was below the age of 25 in 2006. This distinct demographic advantage makes India one of the youngest countries in the world, with a large and growing labor force that can be tapped to work in the foreign organizations that are increasingly shifting their activities to India. On

21、average 50% of Indians are literate. The breakdown of religions are as follows: Hindu 80%, Muslim 14%, Christian 2.4%, Sikh 2%, Buddhist 0.7%, Jains 0.5%, and other 0.4%. Many Indians are vegetarian and most do not eat beef. Some of the rituals associated with normal life are the frequent religious

22、fasting days of the Hindus, Muslims and Parsis. (L) EcomomyIndia is the fastest growing economy in Asia Pacific region. Even in the global finance crisis, India 2009 real GDP growth rate was 7.9%. Although GDP declined 2% from 20052007, with property price falling as well as customer confidence and

23、both trading and manufacture. India has changed inflation patterns for the past few years. Between 2004-2005 and 2007-2008, India had experienced an average growth rate of more than 10%. Inflation in India 2010 stands at 9.9%. The inflation rate is due to the general rise in prices, and consideratio

24、n the purchasing power. After a brief slump in 2009, Indian house wares and furnishings market is expected to recover in the forecast period and grow in high double digits. Forecast growth is expected to be helped by increased per capita income of Indian middle class populations and also due to incr

25、eased number of home specific organized retailing chains. The market for house wares and furnishings are expected to open up in smaller cities. There is likely to be increased numbers of brands, increased choice and increased demand for house wares and furnishings segment. (Y) IncomeFrom the Total G

26、ross Income of Population Aged in India (appendix) Can clearly be seen, the 20-35 years old young people They accounted for 40% of Total Gross Income in India. Compared to 2004, the total income of 20-35 is 19100090.7 dorllers that is increased by 176%. It means the annual disposable income also sho

27、uld be increased as the same level. The main force consumption should be 2035 years old. That trends and demand for house wares and home furnishings were increasingly being driven by youths residing in urban India. Most young buyers would like to go to the newly developed organized retailing chains

28、and chose the house wares and home furnishings most suited to their lifestyle. India furniture market is shared by more than hundred companies, private labour and other kind of (appendix 2). The private labour and other kind of sellers is own the 90.4% of the Indian furniture market. (Y) Government

29、The past decades in India have seen a shift in the attitude of government policies. The introduction of VAT has been a key development. VAT was implemented in April 2005 at a standard rate of 12, 5%. The current government of India is in favor of long term foreign investment. Now, India offers a tra

30、nsparent environment for the foreign investors, which guarantee the security of their investments. As a business opportunity, there is scope for investment on new technologies in manufacturing. Within the manufacturing sector, the significant reform includes the removal of licensing procedures for investors, reduction of import